AUD/USD Technical Analysis: Key Resistance Above 0.72 Mark
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- AUD/USD Technical Strategy: Flat
- Aussie Dollar gains most in two weeks after finding support above 0.70
- Waiting for actionable short trade setup in line with dominant trend bias
The Australian Dollar is attempting to renew upside momentum against its US namesake, with prices putting in the largest daily advance in two weeks. The pair is attempting to claw its way back to trend-establishing resistance capping gains since early December 2015.
A daily close above the 50% Fibonacci expansion at 0.7181 opens the door for a challenge of the 0.7217-0.31 area marked by the aforementioned trend line and the 61.8% level. Alternatively, a reversal below the 38.2% expansion at 0.7132 clears the way for a test of the 38.2% retracement at 0.7084.
Our 2016 fundamental outlook favors continuation of the dominant multi-year AUD/USD down trend. An actionable short trade setup in line with that proposition is absent for the time being however. With that in mind, we will remain on the sidelines and wait for a compelling selling opportunity to present itself.
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